Delay related to correction of derivative accounting treatment
BALTIMORE, Nov. 10 /PRNewswire-FirstCall/ -- Provident Bankshares
Corporation (Nasdaq: PBKS), the parent company of Provident Bank, announced
today that it will delay the filing of its quarterly report on Form 10-Q for
the third quarter of 2005. This action is the result of a current review
related to the accounting treatment that the Company has applied to certain
derivative instruments that are covered under Financial Accounting Standards
(FAS) 133, "Accounting for Derivative Instruments and Hedging Activities."
The instruments in question involve derivatives on which the Company has
utilized the "short-cut method" of hedge accounting. This review is being
conducted in consultation with KPMG LLP, the Company's independent registered
public accountants.
Although the review is not complete, the Company expects that it will have
to restate certain prior period financial statements. Any resulting financial
statement adjustments are expected to be non-cash. Also, in light of the
foregoing, the Company may revise its previously issued earnings guidance.
About Provident Bankshares Corporation
Provident Bankshares Corporation is the holding company for Provident
Bank, the second largest independent commercial bank headquartered in
Maryland. With $6.4 billion in assets, Provident serves individuals and
businesses in the key urban areas of Baltimore, Washington and Richmond
through a network of 151 offices in Maryland, Virginia, and southern York
County, PA. Provident Bank also offers related financial services through
wholly owned subsidiaries. Securities brokerage, investment management and
related insurance services are available through Provident Investment Center
and leases through Court Square Leasing and Provident Lease Corp. Visit
Provident on the web at http://www.provbank.com.
This Press Release, as well as other written communications made from time
to time by Provident Bankshares Corporation and subsidiaries (the "Company")
(including, without limitation, the Company's 2004 Annual Report to
Stockholders) and oral communications made from time to time by authorized
officers of the Company, may contain statements relating to the future results
of the Company (including certain projections and business trends) that are
considered "forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995 (the PSLRA). Such forward-looking statements
may be identified by the use of such words as "believe," "expect,"
"anticipate," "should," "planned," "estimated," "intend" and "potential."
Examples of forward-looking statements include, but are not limited to,
possible or assumed estimates with respect to the financial condition,
expected or anticipated revenue, and results of operations and business of the
Company, including earnings growth determined by using U.S. generally accepted
accounting principles ("GAAP"); revenue growth in consumer banking, lending
and other areas; origination volume in the Company's consumer, commercial and
other lending businesses; asset quality and levels of non-performing assets;
current and future capital management programs; non-interest income levels,
including fees from services and product sales; tangible capital generation;
market share; expense levels; and other business operations and strategies.
For these statements, the Company claims the protection of the safe harbor for
forward-looking statements contained in the PSLRA.
The Company cautions you that a number of important factors could cause
actual results to differ materially from those currently anticipated in any
forward-looking statement. Such factors include, but are not limited to: the
factors identified in the Company's Form 10-K for the fiscal year ended
December 31, 2004 under the headings "Forward-Looking Statements" and "Risk
Factors"; prevailing economic and geopolitical conditions; changes in interest
rates, loan demand, real estate values and competition, which can materially
affect, among other things, consumer banking revenues, revenues from sales on
non-deposit investment products, origination levels in the Company's lending
businesses and the level of defaults, losses and prepayments on loans made by
the Company, whether held in portfolio or sold in the secondary markets;
changes in accounting principles, policies, and guidelines; changes in any
applicable law, rule, regulation or practice with respect to tax or legal
issues; risks and uncertainties related to acquisitions and related
integration and restructuring activities; conditions in the securities markets
or the banking industry; changes in the quality or composition of the
investment portfolio; litigation liabilities, including costs, expenses,
settlements and judgments; or the outcome of other matters before regulatory
agencies, whether pending or commencing in the future; and other economic,
competitive, governmental, regulatory and technological factors affecting the
Company's operations, pricing, products and services. Additionally, the timing
and occurrence or non-occurrence of events may be subject to circumstances
beyond the Company's control. Readers are cautioned not to place undue
reliance on these forward-looking statements which are made as of the date of
this report, and, except as may be required by applicable law or regulation,
the Company assumes no obligation to update the forward-looking statements or
to update the reasons why actual results could differ from those projected in
the forward-looking statements.
In the event that any non-GAAP financial information is described in any
written communication, including this press release, or in our teleconference,
please refer to the supplemental financial tables included with this release
and on our website for the GAAP reconciliation of this information.
SOURCE Provident Bankshares Corporation
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Related links:
http://www.provbank.com
Company News On-Call:
http://www.prnewswire.com/comp/721938.html
CONTACT:
Media - Lillian Kilroy, +1-410-277-2833, or
Investment Community - Melissa P. Kelly, +1-410-277-2080, both of
Provident Bankshares Corporation
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